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The full form of CTC is: COST TO COMPANY

What does CTC stand for - Fullformatoz.com

What is CTC?

The CTC is the total expense a company makes on an employee for a year. This expense includes the Employee’s basic salary, gratuity, provident fund, pension fund, travel allowance, medical allowance depending on the company. 

Hence your take-home salary is not your CTC but your basic salary.

Which is better CTC or gross salary?

Gross salary is a part of your CTC. It’s the amount left after deducting gratuity and employee provident fund(EPF) and before deducting taxes and other allowances. 

GROSS SALARY = CTC - GRATUITY - EPF

How to calculate Net Salary? 

Net salary is the salary you get after all the deduction of taxes, gratuity, EPF, allowances etc. This is your take-home salary or basic pay.  

NET SALARY = GROSS SALARY - TAX DEDUCTION - INCENTIVES ALLOWANCE DEDUCTION   

What is the Employee Provident Fund? 

Employee Provident Fund (EPF) is a scheme where both Employee and Employer has to give equal contribution which can be availed by the Employee at his/her retirement.

What is Gratuity?

Gratuity is the part of CTC paid by Employer to appreciate the service provided by the Employee in addition to the basic pay. 

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